LN08-ch8-LectureProblems-AFM101s10

# LN08-ch8-LectureProblems-AFM101s10 - Chapter 8 Exercise 1...

This preview shows pages 1–5. Sign up to view the full content.

Chapter 8 – Exercise 1 (1 of 6) Claremont Sweet Shoppe orders and sells toffees by the pound. On July 1 st , Claremont had 500 pounds of toffee on hand which was purchased at \$1.00 per pound. Claremont made a number of purchases of toffee during July: Date of purchase Pounds Cost per Pound Total Cost July 5 1,000 \$1.10 \$1,100 July 9 1,200 \$1.15 \$1,380 July 20 1,200 \$1.20 \$1,440 July 30 1,500 \$1.25 \$1,875 During July, the company sold 3,800 pounds of toffee at \$1.45 per pound.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Chapter 8 – Exercise 1 (2 of 6) Part A: Compute the number of pounds of toffee on hand on July 31 st , and the cost of goods available for sale for the month of July. SOLUTION:
Chapter 8 – Exercise 1 (3 of 6) Part B: Assume that the company uses the weighted-average inventory method. Compute its ending inventory on July 31 st , the cost of goods sold during July, and the company’s gross profit during July. SOLUTION:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(4 of 6) Part C: Assume that the company uses FIFO. Compute its ending inventory on July 31 st , the cost of goods sold during July, and the company’s gross profit during July. SOLUTION:
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 06/17/2011 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

### Page1 / 15

LN08-ch8-LectureProblems-AFM101s10 - Chapter 8 Exercise 1...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online